Reserve Bank governor denies inflation is ‘taking off’ amid fears of fresh rate hikes
The Guardian World
by Patrick Commins and Luca IttimaniFebruary 25, 2026
AI-Generated Deep Dive Summary
The Reserve Bank governor has dismissed claims that inflation is "taking off," despite recent data showing sustained price increases into 2026 andheightened expectations for two additional interest rate hikes. Annual inflation remained steady at a high 3.8% in January, reflecting ongoing economic pressures. This comes as the removal of government subsidies has sent electricity costs soaring by 19% for the month, leaving power bills nearly one-third higher than they were a year ago.
The sharp rise in electricity prices is a direct result of the expiration of government subsidies, which had previously helped mitigate cost increases. This significant jump has placed a substantial financial burden on households and businesses alike, contributing to broader inflationary pressures across the economy. The persistence of high inflation, despite efforts by central banks to control it through interest rate hikes, raises concerns about the effectiveness of current monetary policies.
This situation underscores the delicate balance central banks face in managing inflation while avoiding过度紧缩 that could harm economic growth. For readers interested in global economics and political developments, this highlights the challenges faced by policymakers as they navigate inflationary trends and their impact on everyday life. The outcome of these efforts will have far-reaching implications for Australia's economy and potentially influence similar policy decisions worldwide.
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Originally published on The Guardian World on 2/25/2026